BILL NUMBER: AB 1004	CHAPTERED  03/24/00

	CHAPTER   5
	FILED WITH SECRETARY OF STATE   MARCH 24, 2000
	APPROVED BY GOVERNOR   MARCH 23, 2000
	PASSED THE ASSEMBLY   MARCH 9, 2000
	PASSED THE SENATE   FEBRUARY 28, 2000
	AMENDED IN SENATE   FEBRUARY 18, 2000
	AMENDED IN SENATE   AUGUST 17, 1999
	AMENDED IN SENATE   JULY 1, 1999
	AMENDED IN ASSEMBLY   MAY 6, 1999
	AMENDED IN ASSEMBLY   APRIL 29, 1999
	AMENDED IN ASSEMBLY   APRIL 12, 1999

INTRODUCED BY   Assembly Member Papan and Senator Burton

                        FEBRUARY 25, 1999

   An act to amend Item 0840-001-0001 of Section 2.00 of the Budget
Act of 1999, relating to unclaimed property, and declaring the
urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1004, Papan.   Unclaimed property:  sending of notices.
   Existing law, Item 0840-001-0001 of the Budget Act of 1999,
appropriates money for the support of the Controller, but restricts
its use with regard to providing information about unclaimed
property, as specified.
   This bill would provide that the restrictions on the appropriation
do not apply to the sending of notices to apparent owners of
unclaimed property, as specified.
   This bill would declare that it would take effect immediately as
an urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Item 0840-001-0001 of Section 2.00 of the Budget Act of
1999 (Ch. 50, Stats. 1999) is amended to read:


0840-001-0001-For support of State Controller ..........  60,391,000
    Schedule:
    (a) 100000-Personal Services ...........  64,672,000
    (b) 300000-Operating Expenses and
        Equipment ..........................  34,481,000
    (c) Less funding provided by State
        Controller's Statewide Information
        Technology Projects (Item 0841-
        001-0001) ..........................  -3,597,000
    (d) Reimbursements ..................... -27,730,000
    (e) Amount payable from the Motor
        Vehicle Fuel Account, Transporta-
        tion Tax Fund (Item 0840-001-
        0061) ..............................  -2,915,000
    (f) Amount payable from the Highway
        Users Tax Account, Transportation
        Tax Fund (Item 0840-001-0062) ......    -804,000
    (g) Amount payable from the Local
        Revenue Fund (Item 0840-001-
        0330) ..............................    -387,000
    (h) Amount payable from the State
        School Building Lease-Purchase
        Fund (Item 0840-001-0344) ..........    -699,000
    (i) Amount payable from the Federal
        Trust Fund (Item 0840-001-0890) ....  -1,273,000
    (j) Amount payable from the State Pen-
        alty Fund (Item 0840-001-0903) .....    -936,000
    (k) Amount payable from nongovern-
        mental cost funds, (Retail Sales
        Tax Fund) (Item 0840-001-0988) .....    -178,000
    (l) Amount payable from various spe-
        cial funds (Item 0840-011-0494) ....     -41,000
    (m) Amount payable from various bond
        funds (Item 0840-011-0797) .........    -162,000
    (n) Amount payable from various non-
        governmental cost funds (Item
        0840-011-0988) .....................     -40,000
    Provisions:
    1.  The appropriation made in this item shall be in
        lieu of the appropriation in Section 1564 of the
        Code of Civil Procedure for all costs, expenses,
        or obligations connected with the administration
        of the Unclaimed Property Law, with the exception
        of payment of owners' or holders' claims pursuant
        to Section 1540, 1542, 1560, or 1561 of the Code
        of Civil Procedure, or of payment of the costs of
        compensating contractors for locating and recov-
        ering unclaimed property due the state.
    2.  Of the claims received for reimbursement of court-
        ordered or voluntary desegregation programs
        pursuant to Sections 42243.6, 42247, and 42249
        of the Education Code, the Controller shall pay
        only those claims that have been subjected to
        audit by school districts in accordance with the
        Controller's procedures manual for conducting
        audits of education desegregation claims.
        Furthermore, the Controller shall pay only those
        past-year actual claims for desegregation program
        costs that are accompanied by all reports issued
        by the auditing entity, unless the auditing entity
        was the Controller.
    3.  No less than 0.9 personnel-year in the Audits
        Division shall be used to audit education
        desegregation claims.
    4.  The Controller may, with the concurrence of the
        Director of Finance and the Chairperson of the
        Joint Legislative Budget Committee, bill affected
        state departments for activities required by
        Section 20050 of the State Administrative Manual,
        relating to the administration of federal
        pass-through funds.
        No billing may be sent to affected departments
        sooner than 30 days after the Chairperson of
        the Joint Legislative Budget Committee has been
        notified by the Director of Finance that he or she
        concurs with the amounts specified in the billings.
    5. (a) Notwithstanding subdivision (b) of Section
           1531 of the Code of Civil Procedure, the
           Controller may publish notice in any manner
           that the Controller determines reasonable,
           provided that (1) none of the moneys used for
           this purpose is redirected from funding for
           the Controller's audit activities, (2) no
           photograph is used in the publication of
           notice, and (3) no elected official's name
           is used in the publication of notice.
       (b) No funds appropriated in this act may be
           expended by the Controller to provide general
           information to the public, other than holders,
           as defined in subdivision (e) of Section 1501
           of the Code of Civil Procedure, of unclaimed
           property
           concerning the unclaimed property program or
           possible existence of unclaimed property held
           by the Controller's office, except for
           informational announcements to the news media,
           through the exchange of information on electronic
           bulletin boards, or no more than $15,000 per year
           to inform the public about this program in
           activities already organized by the Controller for
           other purposes.
           This restriction does not apply to the sending
           of individual notices to apparent owners of
           property as provided in subdivision (d)
           of Section 1531 of the Code of Civil Procedure.
    6.  The Controller's office shall, through audits of
        Medi-Cal program and providers, enhance the
        General Fund resources or reduce the General
        Fund expenditures in the amount of $22,100,000,
        through identification of overpayments, cost
        avoidance, and other appropriate measures.
    7.  Of the moneys appropriated to the Controller in
        this act, the Controller shall not expend more than
        $500,000 to conduct posteligibility fraud audits of
        the Supplemental Security Income/State
        Supplementary Payment Program (SSI/SSP).
    8.  The Commission on State Mandates shall
        provide, in applicable parameters and guidelines,
        as follows:
        (a) If a local agency or school district contracts
            with an independent contractor for the prepa-
            ration and submission of reimbursement
            claims, the costs reimbursable by the state for
            that purpose shall not exceed the lesser of (1)
            10 percent of the amount of the claims prepared
            and submitted by the independent contractor, or
            (2) the actual costs that would necessarily have
            been incurred for that purpose if performed by
            employees of the local agency or school district.
        (b) The maximum amount of reimbursement provided in
            subdivision (a) may be exceeded only if the local
            agency or school district establishes, by
            appropriate documentation, that the preparation and
            submission of these claims could not have been
            accomplished without incurring the additional
            costs claimed by the local agency or school
            district.
    9.  The funds appropriated to the Controller in this act
        may not be expended for any performance review or
        performance audit except pursuant to specific
        statutory authority. It is the intent of the
        Legislature that audits conducted by the Controller,
        or under the direction of the Controller, shall be
        fiscal audits that focus on claims and disbursements,
        as provided for in Section 12410 of the Government
        Code. Any report, audit, analysis, or evaluation
        issued by the Controller for the 1999-00 fiscal
        year shall cite the specific statutory or
        constitutional provision authorizing the
        preparation and release of the report audit,
        analysis, or evaluation.
    10. The Controller shall deliver his or her monthly
        report on General Fund cash receipts and
        disbursements within 10 days after the close of
        each month to the Joint Legislative Budget
        Committee, the fiscal committees of the
        Legislature, the Department of Finance, the
        Treasurer's office, and the Office of the
        Legislative Analyst.
    11. For purposes of the review and payment of any
        claim for reimbursement by local government
        submitted pursuant to Section 54954.4 of the
        Government Code, the Controller shall use the
        procedures that were in effect at the time the
        claim was submitted.
    12. Pursuant to subdivision (c) of Section 1564
        of the Code of Civil Procedure, the
        Controller shall transfer all money in the
        Abandoned Property Account in excess of fifty
        thousand dollars ($50,000) to the General Fund
        no less frequently than at the end of each
        month. This transfer shall include unclaimed
        Proposition 103 insurance rebate moneys pursuant
        to Section 1861.01 of the Insurance Code and
        Section 1523 of the Code of Civil Procedure.

  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to expedite the return of unclaimed property to its
rightful owners, it is necessary for this act to take effect
immediately.
